Video game industry in the context of "Nolan Bushnell"

A video game, computer game, or simply game, is an electronic game that involves interaction with a user interface or input device (such as a joystick, controller, keyboard, or motion sensing device) to generate visual feedback from a display device, most commonly shown in a video format on a television set, computer monitor, flat-panel display or touchscreen on handheld devices, or a virtual reality headset. Most modern video games are audiovisual, with audio complement delivered through speakers or headphones, and sometimes also with other types of sensory feedback (e.g., haptic technology that provides tactile sensations). Some video games also allow microphone and webcam inputs for in-game chatting and livestreaming.

Video games are typically categorized according to their hardware platform, which traditionally includes arcade video games, console games, and computer games (which includes LAN games, online games, and browser games). More recently, the video game industry has expanded onto mobile gaming through mobile devices (such as smartphones and tablet computers), virtual and augmented reality systems, and remote cloud gaming. Video games are also classified into a wide range of genres based on their style of gameplay and target audience.

Pong is a 1972 sports video game developed and published by Atari, Inc. for arcades. It was created by Allan Alcorn as a training exercise assigned to him by Atari co-founder Nolan Bushnell. Bushnell and Atari co-founder Ted Dabney were so surprised by the quality of Alcorn's work that they decided to manufacture the game. Bushnell based the game's concept on an electronic ping-pong game included on the Magnavox Odyssey, the first home video game console; in response, Magnavox later sued Atari for patent infringement.

Pong was the first commercially successful video game, helping to establish the video game industry along with the Magnavox Odyssey. Soon after its release, several companies began producing games that closely mimicked its gameplay. Eventually, Atari's competitors released new types of video games that deviated from Pong's original format to varying degrees; this, in turn, led Atari to encourage its staff to move beyond Pong and produce more innovative games themselves.

An arcade video game is an arcade game that takes player input from its controls, processes it through electrical or computerized components, and displays output to an electronic monitor or similar display. All arcade video games are coin-operated or accept other means of payment, housed in an arcade cabinet, and located in amusement arcades alongside other kinds of arcade games. Until the early 2000s, arcade video games were the largest and most technologically advanced segment of the video game industry.

Early prototypical entries Galaxy Game and Computer Space in 1971 established the principle operations for arcade games, and Atari's Pong in 1972 is recognized as the first successful commercial arcade video game. Improvements in computer technology and gameplay design led to a golden age of arcade video games, the exact dates of which are debated but range from the late 1970s to the early 1980s. This golden age includes Space Invaders, Pac-Man, and Donkey Kong. The arcade industry had a resurgence from the early 1990s to mid-2000s, including Street Fighter II, Mortal Kombat, and Dance Dance Revolution, but ultimately declined in the Western world as competing home video game consoles such as the Sony PlayStation and Microsoft Xbox increased in their graphics and gameplay capability and decreased in cost. Nevertheless, Japan, China, and South Korea continue to maintain a robust arcade industry in contemporary times.

A virtual reality game or VR game is a video game played on virtual reality (VR) hardware. Most VR games are based on player immersion, typically through a head-mounted display unit or headset with stereoscopic displays and one or more controllers.

The video game industry made early attempts at VR in the 1990s, most notably with Sega's VR-1 and Virtuality for arcades, along with unsuccessful attempts for home consoles with the Sega VR prototype and Nintendo's Virtual Boy. With the introduction of the first consumer-ready home VR product, the Oculus Rift, in 2013, home VR games soon followed, including existing games adapted for the VR hardware, and new games designed directly for VR. While VR hardware and games grew modestly for the remainder of the 2010s, Half-Life: Alyx, a full VR game developed by Valve and released in 2020, was considered the killer application for VR games.

Sony Interactive Entertainment LLC (SIE) is an American video game and digital entertainment company of Japanese conglomerate Sony Group Corporation. It primarily operates the PlayStation brand of video game consoles and products. It is also the world's largest company in the video game industry based on its equity investments and revenue.

In 1993, Sony and Sony Music Entertainment Japan jointly established Sony Computer Entertainment Inc. (SCE) in Tokyo, which released the video game console PlayStation in Japan the following year and subsequently in the United States and Europe the year after. In 2010, Sony underwent a corporate split and established Sony Network Entertainment International (SNEI) in California, which provided gaming-related services through the PlayStation Network as well as other media through Sony Entertainment Network, including the sale of game titles and content on the PlayStation Store, as well as offering PlayStation Plus and Media Go. In 2016, SCE and SNEI jointly established Sony Interactive Entertainment and it was announced the new entity would be headquartered in the United States.

Atari, Inc. was an American video game developer and home computer company founded in 1972 by Nolan Bushnell and Ted Dabney. Atari was a key player in the formation of the video arcade and video game industry.

The company was founded in Sunnyvale, California, in the center of Silicon Valley, to develop arcade games, starting with Pong in 1972. As computer technology matured with low-cost integrated circuits, Atari ventured into the consumer market, first with dedicated home versions of Pong and other arcade successes around 1975, and into programmable consoles using game cartridges with the Atari Video Computer System (Atari VCS or later branded as the Atari 2600) in 1977. To bring the Atari VCS to market, Bushnell sold Atari to Warner Communications in 1976. In 1978, Warner brought in Ray Kassar to help run the company, but over the next few years, gave Kassar more of a leadership role in the company. Bushnell was fired in 1978, with Kassar named CEO in 1979.

The video game crash of 1983 (known in Japan as the Atari shock) was a large-scale recession in the video game industry that occurred from 1983 to 1985 in the United States. The crash was attributed to several factors, including market saturation in the number of video game consoles and available games, many of which were of poor quality. Waning interest in console games in favor of personal computers also played a role. Home video game revenue peaked at around $3.2 billion in 1983 (equivalent to $10.1 billion in 2024), then fell to around $100 million (equivalent to $292.36 million in 2024), a drop of almost 97%. The crash abruptly ended what is retrospectively considered the second generation of console video gaming in North America. To a lesser extent, the arcade video game market also weakened as the golden age of arcade video games came to an end.

Lasting about two years, the crash shook a then-booming video game industry and led to the bankruptcy of several companies producing home computers and video game consoles. Analysts of the time expressed doubts about the long-term viability of video game consoles and software.